PROJECT REPORT ON MARKETING

MANAGEMENT

‘Every organ in your body get support and sympathy when it is ill,
except for your brain.’

Srijan Chauhan PGP18151 | Soumya Prakash Sahu PGP18149 | Stanzin Tundup PGP18152
Rohan Bhaunt PGP18135 | Mohib Ahmed PGP18126 | Shounak Dutta PGP18143

Srijan Chauhan PGP18151 | Mohib Ahmed PGP18126 | Rohan Bhaunt PGP18135 Stanzin
Tundup PGP18135 | Soumya Prakash Sahu PGP18149 | Shounak Dutta PGP18143
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Table of Contents
1. About VLCC 2

2. Segmentation of India’s Wellness Industry 3

3. Identifying the gap 3

4. Value Proposition 5

5. Marketing Mix 5

5.1 Product 5

5.2 Price 6

5.3 Place 6

5.4 Promotions 6

6. Competition and Analysis 7

7. Customers 7

8. Collaborators 8

9. Pricing Strategy 9

10. References 9

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 1. About VLCC

VLCC has revolutionized the wellness industry to acquire the status of being the Number 1
Wellness Brand across South Asia, South East Asia and the Middle East, with a presence in
over 300 locations across 121 cities and 16 countries with direct company managed
operations in 11 countries including India, Bangladesh, Malaysia, UAE, Oman, Qatar and
others
The company is widely recognized for redefining wellness by its scientific weight loss
solutions and its therapeutic approach to beauty treatments. With a staff strength of nearly
6000, over two- third of whom are experienced specialists including medical doctors,
nutritionists, psychologists, cosmetologists and physiotherapists and having served over 10
million customers since its inception, VLCC is the largest and most-preferred brand in the
Wellness domain in the countries it operates in.
VLCC has the most diversified portfolio and presence in all segments of beauty and wellness
services industry and is positioned as a full service player in the average-to-premium price
point segment.

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 2. Segmentation of India’s Wellness Industry:
The wellness industry is segmented according to their services offered; it is illustrated in the
table below:

Segments in Services Offered CAGR Drivers

Wellness Industry
Beauty Care Beauty Center 11% Evolution of concept beauty
Salons of a woman subject to being
gender neutral. Hence,
bringing in a whole new
target audience in form of
adolescent young and middle
aged men
Fitness Centers Slimming Center, 18% Increasing adolescent obesity
Yoga in the country
Increased penetration and
acceptance of organizing
players
Alternate Therapy AYUSH (Ayurveda, 7% Government Push in this
Yoga, Unani, Sidha, segment
Homeopathy) Herbal products like anti-
treatment diabetic formulations are
likely to play a key role.
Rejuvenation Massage centers 20% Increasing stress level in tier I
Spa and Sauna cities will contribute to its
proliferation

Mental Government --- Increasing Focus on Mental

Hospitals and Health
Clinics, Psychiatrist New Emerging Sectoral
Focus

3. Identifying the gap

Wellness is a multidimensional concept and has been defined as principal and foremost a
choice to assume responsibility for the quality of one’s life. It begins with a conscious choice
to shape a healthy lifestyle.

The wellness centres are defined as any service provider, who has positioned themselves as
an organization offering platform comprising physical fitness, beauty care, healthy nutrition,
diet, relaxation by rejuvenation, meditation, psychological activity, education, or ambience
which aims at preserving or promoting the general health of the client.

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Physical wellness: encompassing the degree to which an individual maintains and improves
cardiovascular fitness, flexibility, and strength. seeking suitable medical care and taking
action to prevent and notice illnesses

Emotional wellness: Emotional wellness, it focuses on one’s self-concept or self-esteem, that

is, a secure identity and positive sense of self demarcated emotional wellness with regard to
one’s level of anxiety, depression, self-control, well-being, and optimism. Emotional wellness
includes experiencing satisfaction, interest, and pleasure
in life, as well as having a positive and optimistic anticipation of the future.

Psychological wellness:
Psychological wellness, as defined individuals sense of optimism that she or he will
experience
positive outcomes resulting from the events and experiences of life.

The 2017 IBEF report on the healthcare sector in India predicted that by 2020, Indian medical
tourism is expected to grow to USD 8 billion. India seems to the place to be for healthcare,
but most market research on the healthcare and wellness industry excludes mental health
care from the equation.
Mental health has been defined as a state of balance between the individuals and the
surrounding world, a state of harmony between oneself and others, a coexistence between the
realities of the self and that of other people and that of the environment.
The mental health state of India is dismal:
The National Crime Records Bureau recorded 1, 33,623cases of suicide in 2015. The
agencies continue to predict a steady increase in these disturbing figures.
ASSOCHAM reports that 42.5% of corporate employees suffer from some form of
depression.
The present mental health care infrastructure of India is among the lowest:
 70 million mentally ill in the country of 1.25 billion people.
 20000 beds in 42 mental hospitals.

Manpower in India
 Psychiatrist around 5000
 Per 10,000 populations = 0.2 (World =1.2)
 Clinical psychologist ~2000
 Psychiatric social workers ~ 1000

Mental health care has great potential for growth and development and is backed by a steady
market demand.

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 4. Value Proposition

‘Make life worth living’

It’s time we address the elephant in the room. 4.5% of India's population suffer
from depression at this moment and another 38 million Indians suffer from anxiety disorders.
Interventions, focusing on raising awareness of mental health issues and mobilizing efforts in
support of mental health, are necessary for addressing the situation.

VLCC is doing its bit with ReThink.

Platform for sharing

Direct to home
24-hours helpline experiences with
counselling
mental illness

We are in this together.

5. Marketing Mix:

5.1. Product:
Mental healthcare is an intangible product as it is a service based product and we are
segmenting the market into 3 categories based on age:

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  Students and teenagers (13-19)

 Corporate employees (20-39)

 Old age citizens (above 40)

Services provided by the product:

 It will provide the direct to home counseling service and immediate professional
guidance on demand.

 24-hour helpline service for any emergency situations.

 Platform for people to interact and share their stories so that they don’t feel alone in
the fight against mental illness.

 Training program to recruit new counselors so that more patients can be attended to at
the same time.

 Prescribed medications in necessary situations.

5.2. Price:
The demand for this service is very high in India as there is only one psychiatrist in India for
every lakh patient. Therefore, the product can be priced at a high rate. With rising cases of
anxiety and depression due to this fast moving world, people have started looking for
professional guidance or just people they can talk to. Corporate employees are ready to pay
huge amounts for hourly sessions with a professional counsellor.

5.3. Place:
 For counseling service, we will target major metropolitan cities because people there
are more progressive and they have started understanding the importance of good
mental health and started to look for professional guidance whenever necessary.

 In rural areas and small cities, major focus will be on spreading awareness about the
importance of mental health and removing the stigma around it. We will be looking
for professionals who are multilingual so that people from rural areas can
communicate easily. We will spread awareness about the types of different mental
illnesses like depression, anxiety, bipolar disorder and schizophrenia.

5.4. Promotion:
Promotions can be done by spreading the message about mental illness and normalizing the
term. We will do it is by asking celebrities and influential people to share their stories so that
people can get inspired and feel like they are not alone in this battle and can talk about it
openly. There are people like Deepika Padukone and Elon Musk who have openly talked

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about their fight against mental illness and that has given confidence to millions of people
that they can come out of this stronger and better. We need to contact more influential people
like this to share their story so that mental illness does not remain a stigma anymore.

6. Competition and Analysis

Market Analysis

7. Customers
The health and wellness market segment showed a growth 0.30% increase in market share
with projected CAGR of almost 6% globally.
In India, the wellness sector is projected to achieve a CAGR of 12%, according to recent
reports by FICCI and EYI, with the industry estimated to reach a high of 1.5 trillion by 2020.
The key drivers of growth in the sector were found to be a rise in disposable income, coupled
with a growing urban population and increasing prevalence of mental health related issues.
The growth in focus on mental wellbeing can be attributed to an increasingly stressful work
life and the fast paced dynamic of today’s world, which leaves many youngsters with anxiety
and stress related issues.

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 8. Collaborators

Tie-ups with Corporate:

VLCC already have formulated a ‘Corporate Wellness Program’, where they guide various
executives working in a corporate to lead a healthy lifestyle by providing them various
preventive health care services. This existing channel can be use to provide mental wellness
services such as advice, information, counselling and other mental illness services.
Association with Government bodies:
VLCC institute offers several skill development programs to various ministries and
departments of the Central Government and State governments. The Institute is registered
with BWSSC to offer various training courses. This relationship can be a two-way process,
where the VLCC institute can provide mental illness counsellor to address the psychological
needs of government employees.
Collaboration with various educational institutes:
As per the research by ‘The Conversation’, 1 out of 5 students have anxiety and depression.
VLCC institute can provide mental wellness program in various institutes to promote
emotional health and prevent suicide among college students. This type of program will help
to reduce stress, depression and anxiety among the students and will promote them to reach
out to people in case of emotional problem.

9. Pricing Strategy
Competitive pricing:

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Mental Wellness is an experiential service that will be provided by VLCC. According to the
industry standard, a competitive price can be set to achieve the maximum percentage of the
customer base.
Product-bundling pricing:
A 360-degree approach can be taken to wellness offerings by bundling physical and mental
health related services together, which can be more lucrative to people who are more invested
in their health and are ready to pay for it.
Two – Part Pricing
Memberships can be offered to regular customers or customers who are looking for
continued access to different services on offer. This will involve a high upfront price to
purchase membership followed by special member discounts on different services. This
pricing scheme will be more encouraging for the customers and more adjustable for the
management.

References
[1] Case Study, Mba (marketing): Market Diversification Strategy Of Vlcc - from an
Economic Angle retrieved from https://www.urbanpro.com
[2] VLCC DHRP Report, retrieved from https://www.sebi.gov.in/filings/public-issues/sep-
2015/vlcc-health-care-limited_30712.html
[3] A.Sai (2018) Competitiveness of Indian Wellness Industry: A Conceptual Analysis
retrieved from International Journal of Pure and Applied Mathematics
[4] (n.d.) India Is Facing a Possible Mental Health Epidemic retrieved from
https://www.thehindu.com/ news/national/ karnataka/india-is-facing-a-possible-mental-
health-epidemic-says-president/article22335971.ece
[5] David Rosenberg - 1 in 5 College Students Have Anxiety or Depression. Here's Why
retrieved from http://theconversation.com/1-in-5-college-students-have-anxiety-or-
depression-heres-why-90440

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